(a) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
(1) discharges the obligation to the extent consented to by the debtor;
(2) transfers to the secured party all of a debtor's rights in the collateral;
(3) discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
(4) terminates any other subordinate interest.
(b) A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this chapter.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 9 - Secured Transactions
Subpart 1 - Default and Enforcement of Security Interest
§ 4-9-602. Waiver and variance of rights and duties
§ 4-9-603. Agreement on standards concerning rights and duties
§ 4-9-604. Procedure if security agreement covers real property or fixtures
§ 4-9-605. Unknown debtor or secondary obligor
§ 4-9-606. Time of default for agricultural lien
§ 4-9-607. Collection and enforcement by secured party
§ 4-9-609. Secured party's right to take possession after default
§ 4-9-610. Disposition of collateral after default
§ 4-9-611. Notification before disposition of collateral
§ 4-9-612. Timeliness of notification before disposition of collateral
§ 4-9-613. Contents and form of notification before disposition of collateral: General
§ 4-9-615. Application of proceeds of disposition — Liability for deficiency and right to surplus
§ 4-9-616. Explanation of calculation of surplus or deficiency
§ 4-9-617. Rights of transferee of collateral
§ 4-9-618. Rights and duties of certain secondary obligors
§ 4-9-619. Transfer of record or legal title
§ 4-9-621. Notification of proposal to accept collateral
§ 4-9-622. Effect of acceptance of collateral